|
Title: Harvey Automobiles uses a standard part in the manufacture of several of its trucks. The cost of pro Post by: bernie2981 on Nov 14, 2015 Harvey Automobiles uses a standard part in the manufacture of several of its trucks. The cost of producing 40,000 parts is $120,000, which includes fixed costs of $60,000 and variable costs of $60,000. The company can buy the part from an outside supplier for $3.00 per unit, and avoid 30% of the fixed costs.
Assume that factory space freed up by purchasing the part from an outside source can be used to manufacture another product that can be sold for $12,000 profit. If Harvey Automobiles makes the part, what will its operating income be? A) $54,000 greater than if the company bought the part B) $30,000 greater than if the company bought the part C) $150,000 greater than if the company bought the part D) $30,000 less than if the company bought the part Title: Re: Harvey Automobiles uses a standard part in the manufacture of several of its trucks. The cost of Post by: nuclei on Nov 19, 2015 Content hidden
Title: Re: Harvey Automobiles uses a standard part in the manufacture of several of its trucks. The cost of pro Post by: bernie2981 on Dec 1, 2015 Wow! Thank you
Title: Re: Harvey Automobiles uses a standard part in the manufacture of several of its trucks. The cost of ... Post by: Maxwell Russo on Jun 27, 2020 Thanks!
|